Presented below are selected ledger accounts of Kingbird Corporation as of December 31, 2025.
Cash
$60,000
Administrative expenses
120,000
Selling expenses
96.000
Net sales
648.000
Cost of goods sold
252.000
Cash dividends declared (2025)
24,000
Cash dividends paid (2025)
18,000
Discontinued operations (loss before income taxes)
48,000
Depreciation expense, not recorded in 2024
36.000
Retained earnings, December 31, 2024
108.000
Effective tax rate 20%
(a)
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(b)
Prepare a partial income statement beginning with income from continuing operations before income tax, and include
appropriate earnings per share information. Assume 10,000 shares of common stock were outstanding during 2025. (Round
earnings per share to 2 decimal places, e.g. 1.58.)
KINGBIRD CORPORATION
Income Statement